Caroline Lucas
Main Page: Caroline Lucas (Green Party - Brighton, Pavilion)(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Caroline Flint
I absolutely agree with my hon. Friend. Just for the record, energy bills fell under my right hon. Friend the Leader of the Opposition. When he became Secretary of State for Energy and Climate Change the average bill was £1,215, and when he left it was £1,105. I am happy with that drop of more than £100, but since then there has been an increase of more than £300 in the past few years.
Alongside simpler tariffs, which we would all agree with, protections should be put in place for people less able or less inclined to switch. That is why our motion proposes to require the energy companies to put all those over the age of 75 on to the cheapest tariff. We know that the over-75s are the most likely to live in homes with poor energy efficiency and the most vulnerable to the cold weather, but the least likely to switch supplier, so they often pay more than they need to. That is sometimes simply because they do not have enough confidence to access the internet, where the information on the cheapest deals is available, or to operate an online account. I have discussed our proposal with suppliers, and they indicate that there is no reason why it cannot be done, so I hope that the Secretary of State will be able to give a more positive response than he has in the past.
Caroline Lucas (Brighton, Pavilion) (Green)
Yesterday, Lord Stern dismissed claims that fracking could bring down the price of gas in the UK as “baseless economics”. Given the long list of experts explaining why shale gas will not help people who are struggling with high energy bills and will actually trash our climate commitments, will the right hon. Lady take this opportunity to rule out fracking in the UK under any future Labour Government?
Caroline Flint
I have been clear that our approach to fracking and what it could offer must be evidence-led. In the past few years, I have been disappointed by the fact that, for all sorts of reasons, the Government have chosen to up the ante on what gas from such exploration can provide. We do not really know the exact cost-benefits of fracking for gas. We do not know how much is there and whether those benefits will be realised when we get it out of the ground. I am afraid that I shall have to disappoint the hon. Lady by not ruling it out, but our approach must be evidence-based and pragmatic. I certainly do not believe that we should be offering tax breaks, given everything that is going on in this country, for something that might not happen for 10 years, if it happens at all.
The Government have harmed the reasonable debate that we should be having about fracking by trying to polarise the use of the gas against that of renewables. That has been incredibly unfortunate as regards having a practical, reasonable and evidence-led debate. That is what we will lead on in trying to debate the issue, which is important for our country.
As I have said, we can simplify the tariffs. We can take our proposal to put all those who are over 75 on the cheapest tariff. But before we even get to tariffs, we must ensure that the prices that make up bills are set fairly and openly in a properly competitive environment. That is crucial because wholesale costs are the single biggest component of domestic energy bills and make up more than half the prices consumers pay.
If we do not have a competitive wholesale market putting a downward pressure on prices, people might be on the cheapest tariff but might still not be getting a fair deal. The Government seem to say that they agree that the market is not as transparent or competitive as it should be, but what are they doing about it? Not very much.
Mr Davey
My hon. Friend makes a very good point, which I will come to later. It was the Labour party.
The UK faces a huge challenge, which was made much worse by the failure of the Labour party when in government to even begin to tackle Britain’s energy and climate change problems—a lamentable Labour record, which I will return to shortly. The challenge that I as Secretary of State am tackling is the urgent need to attract massive investment while at the same time helping people with high energy bills. We are trying to attract that investment in a much more unfavourable economic and energy climate than Labour faced. The recession, and especially its impact on investors, has meant that people are less willing to invest, so we have to try harder to attract that essential investment.
We face global energy markets that are much tighter than they were during Labour’s time. International wholesale fossil fuel prices, which account for up to half of a typical household bill, have gone up by 50% over the past five years. The vast majority of countries are, like us, seeing energy bills go up, but unlike other countries whose recent Governments invested in energy, Britain faces another massive cost pressure on energy bills, all because Labour failed to invest. The synthetic anger and synthetic policies of the Opposition do not fool anybody.
Mr Davey
No. I want to make some more progress and then I will let the hon. Lady in.
We need a genuine debate. I pay tribute to the Energy and Climate Change Committee for its report “Energy Prices, Profits and Poverty”, which I welcomed on the day it was published. It is more balanced and informed than many contributions to this critical debate and we will respond formally to it soon. Essentially, the debate is about how to get the balance right between regulation and competition, the regulations we need and how we can boost competition.
To be fair to the right hon. Member for Don Valley, her motion and part of her speech covered those issues. Her problem is her party’s record and the inconsistent and, frankly, incoherent policies she seems to want to adopt. Let us consider her three-pronged policy package: abolishing Ofgem and replacing it with Ofgem 2; dropping Ofgem’s reforms of the wholesale market in favour of reintroducing a pool; and tackling, in some way, the big six.
It is a fascinating package, because it completely reverses some of the very few things Labour actually did on energy policy. You couldn’t make it up. Labour set up Ofgem in the first place in 1999. On Labour’s watch, Ofgem abolished retail price regulation. It gets worse for Labour because five years ago the Leader of the Opposition, when he did my job, said that he was strengthening Ofgem. If the Labour party wants to abolish Ofgem, which it set up and which was strengthened by the Leader of the Opposition, what on earth went wrong?
We are ensuring that Ofgem’s powers are increased. We have taken a far more measured approach to the independent regulator. We are ensuring that it and we are on the side of the consumer. We started with a review of Ofgem three years ago. We decided on some reforms and are implementing them. We are giving Ofgem tough powers to compensate consumers when an energy firm does something wrong—something that the Leader of the Opposition forgot to do when he was doing my job. Labour was not on the side of the consumer when it was in government. It is noteworthy how much tougher Ofgem has been since the coalition came to power in promoting competition in retail and wholesale markets, in which it has been strongly supported by us.
I will ask the right hon. Member for Don Valley another question—perhaps she will answer this one. Would she keep the tougher powers that we have given Ofgem? Given that it is improving competition in the wholesale and retail markets, would she abandon those reforms? I will give way to the hon. Member for Brent North (Barry Gardiner), because perhaps he will be able to answer.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
This has been an interesting and timely debate. As we head into the autumn, I know that colleagues across the Chamber share their constituents’ worries about the rising cost of living and the strain that energy costs in particular can put on tight family budgets. That is why the coalition is determined to do everything it can to help hard-working families with their energy bills.
Sitting here this afternoon listening to the Opposition Front Benchers, I could not help but recall the words of Marshal Talleyrand 200 years ago. When the ancien régime was briefly restored to the French throne after the defeat of Napoleon, Talleyrand famously said of the old, backward-looking, clapped out Bourbon royal family, “They learned nothing, and they have forgotten nothing.” Put another way, the old regime singularly failed to understand why they had been deposed by the people in the first place, or to learn from any of their previous mistakes.
Is that not just old Labour all over? Labour, which saw heating bills more than double during its time in government. Labour, which in 13 years of government allowed real competition in the market to shrivel. Labour, which in 1997 inherited a diverse range of 14 competing companies and turned them into the big six. Labour, which drove British energy into the ground and failed to build a single nuclear power station. Its record on renewables was little better. After 13 years in office, Labour left Britain third from the bottom of the European league table for deployed renewable energy. It was Labour that allowed the cost of its green energy programmes to spiral out of control but failed to take real steps to decarbonise the sector; Labour that, after 13 years in power, left office with nearly 5 million vulnerable people living in fuel poverty; and Labour that, in the last Parliament, saw fuel poverty rise in every single year of the now Leader of the Opposition’s tenure as Energy Secretary.
So what is the big idea that Labour has brought forward to the debate to help hard-pressed consumers? It has three ideas—hardly an energy revolution, but let me remind the House what they are. The first is to abolish the regulator that Labour created in 2000 and replace it with—yes, you’ve guessed it—another quango. It also wants to bring back the electricity pool, the same pool that it abolished back in 2001, and put all over-75s on the cheapest tariff—hardly a groundbreaking idea when we are already acting to do that, but for all consumers, not just the oldest 8%, so that all our constituents can benefit from a better deal.
I will not pretend to the House that there are easy answers, simple solutions or quick fixes to driving down fuel poverty, driving up competition in the sector or delivering a better, fairer deal for hard-pressed consumers. However, unlike the Labour Government’s drift, inertia and failure to deliver, the coalition has rolled up its sleeves and is making a real difference.
I want to spell out some of the bold, practical measures that the coalition is taking to help hard-working families, but before I do that I will address some of the important points that colleagues have made. We have heard from the hon. Members for Edinburgh North and Leith (Mark Lazarowicz) and for Strangford (Jim Shannon), my hon. Friend the Member for Daventry (Chris Heaton-Harris), the hon. Member for Angus (Mr Weir), my hon. Friend the Member for Sherwood (Mr Spencer), the hon. Member for Ynys Môn (Albert Owen), my hon. Friend the Member for Tamworth (Christopher Pincher), the hon. Members for East Antrim (Sammy Wilson) and for Glasgow North West (John Robertson), my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley) and the hon. Member for Edinburgh East (Sheila Gilmore).
It was striking that not a single Labour Member spoke in favour of the Opposition’s proposal to abolish Ofgem, but two clearly disagreed with it. It was notable that my hon. Friend the Member for Sherwood made a thoughtful and constructive speech, and he was right to address both the causes of, and possible solutions to, our energy challenges. The hon. Member for Angus was also thoughtful, and I assure him that our simplification of tariffs is already having an impact. I also take on board his important points about prepaid meters.
I wholeheartedly agree with my hon. Friend the Member for Daventry about the need for bill simplification. We get it, and we are on it, but our entire grid is crumbling and requires big investment, whatever energy source we put into it. This year, onshore wind added just £9 to consumer energy bills. The hon. Member for Ynys Môn, the second Labour Member to disagree with Labour Front Benchers about abolishing Ofgem, made sound points about off-grid customers. We are looking carefully at the Committee report to which he contributed. My hon. Friend the Member for Tamworth spoke with great authority and gave a balanced approach to the complex issues we face.
The coalition does not have a magic wand, and Labour’s legacy of debt, deficit and economic failure casts a long shadow over all Departments. Despite the imperative of dealing with Labour’s debts, we are taking action and setting a new radical and ambitious energy agenda. Unlike under the previous Government, there have been two energy Bills in three years. The green deal might be in its infancy—I listened to the hon. Member for Edinburgh East—but it is already building a new market in energy efficiency, and bringing far greater competition to the market and new choices for consumers.
Gregory Barker
The hon. Lady was not actually here for the debate. We are taking action to give more teeth to the regulator and compensate energy consumers who have been badly treated. We have embarked on radical market reform to unleash investment in modern clean energy, building our energy security that was so perilously ignored by Labour. We are also offering immediate help for our constituents. For example, Labour put the whole cost of the renewable heat incentive on to consumer bills. We have removed it, saving consumers £120 million a year collectively. Labour refused to cut solar feed-in tariffs, despite fixing them far too high. We took the tough decision to cut those tariffs. We were right, they were wrong. Solar deployment is up, costs are coming down, and the consumer is better off.